Enterprise, Channel technologies

Intel Layoffs 2016: Thousands of Job Cuts Coming?

Former CEO Brian Krzanich
Brian Krzanich

Intel Corp. might be preparing spring 2016 layoffs, and the job cuts could be deeper than the chip giants' 2015 cuts, according to The Oregonian. The alleged cuts will affect thousands of positions across multiple business units, the newspaper reported.

ChannelE2E has not independently confirmed the report, which surfaces as Intel CEO Brian Krzanich prepares to announce Q1 2016 quarterly results on Tuesday, April 19, after U.S. markets close.


Original April 18 Report: Intel, like many hardware-centric companies, has been working overtime to push beyond client-server systems. Although the company's chips dominate the cloud server market, Intel's moves into the IoT and mobile markets have been less fruitful. Also of concern: the PC market continues to shrink and shows no signs of a rebound, while giants like IBM, Google and Rackspace experiment with alternative data center chips.

Instead of hiding from the challenges, Intel in April 2016 revised its reporting structure and vowed to put a brighter spotlight on its various lines of business -- including:

  • Client Computing Group (CCG)
  • Data Center Group (DCG)
  • Internet of Things Group (IOTG)
  • Non-Volatile Memory Solutions Group (NSG)
  • Intel Security Group (ISecG)
  • Programmable Solutions Group (PSG)
  • All other
    • New Technology Group (NTG)

Intel Executive Changes

Aicha Evans

Intel also has had turnover in its executive ranks. Senior VPs Kirk Skaugen (PC and mobile chip sales) and Doug Davis (IoT chip sales) are leaving the company, Intel confirmed earlier this month. A third alleged departure, potentially involving VP Aicha Evans (smartphone chips), has generated speculation within IT media circles. Some folks wonder if Venkata “Murthy” Renduchintala’s arrival from Qualcomm in November 2015 triggered multiple Intel departures.

Amid those changes, Intel still has its defenders. A case in point: The company's shift to higher-growth businesses such as server chips and embedded chips for cars could drive a 25 increase in its shares in a year, according to an April 17 report in Barron's.

Intel's software business also could be a bright spot. The company has been bolstering its security software business and associated partner strategy in recent months. Key updates are expected to surface at the Intel Security Americas Partner Summit 2016 in May.

Intel Layoffs 2016

Still, job cuts could be coming. The 2016 Intel layoffs, according to The Oregonian:

"will reduce employment in some parts of the business by double-digit percentages, according to Intel insiders, amounting to thousands of job cuts across the company by the end of the year. The planned downsizing could begin soon after Intel reports its first-quarter financial results Tuesday, though sources say timing and specifics remain fluid."

Intel did not respond to The Oregonian's requests for comment.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.